In this project we address key issues in the processing of olfactory information in the olfactory bulb. Specifically, we are investigating the mechanisms that could allow for specific and useful inhibitory interactions among neurons in the olfactory bulb. Our preliminary evidence suggests that the mechanism employed enables an activity-dependent form of lateral inhibition that could function to improve contrast enhancement between odor responses in a dynamic manner irrespective of the topographical organization within the bulb. This mechanism could be employed in many systems where the spatial location of neurons is not clearly related to their individual response profiles. Furthermore, a more thorough understanding of the functional role of physiologic neuronal properties such as lateral inhibition can be applied to principles governing multiple clinical pathologies such as Schizophrenia and other cognitive disorders.